Buildings in HCM City (Photo: VNA)Hanoi (VNA) – Commercial property is attracting much interest from investorsin Vietnam’s property market, which is still an attractive destination forforeign real estate firms.
Real estate services firm Jones Lang Lasalle(JLL) said hundreds of millions of USD is waiting to be poured into almost allsegments of Vietnam’s property market, including housing, office, retail, hotels,and industrial zones. Investors are from many countries such as Japan, theRepublic of Korea and Singapore.
Country head of JLL Vietnam Stephen Wyatt saidhousing is usually the most attractive segment, but investors are switchingtheir attention to commercial property, especially grade-A office projects withideal locations and high growth potential.
Office rents in Vietnam are currently muchhigher than in other countries in the region, reflecting a shortage of office spaces.Meanwhile, more and more foreign investors have been entering and setting upoffices in the country, he noted.
Echoing this view, Tu Thi Hong Anh, Director ofthe Commercial Leasing at Savills Vietnam, said the vacancy rate in theoffice-for-lease market of Ho Chi Minh City has declined to a very low level,pushing office rents to the highest point since 2009.
She added office rents could soar by up to 20percent at some grade-A buildings in 2018 and continue to rise in downtownareas in 2019.
[Property market expected to remain stable in 2018]
There is very big demand for new high-qualitybuildings in good locations, General Manager of Cushman & Wakefield VietnamAlex Crane said, noting that the pressure of hunting for vacant space will lastuntil the end of 2019.
Meanwhile, the retail property segment also boastshuge potential.
Mai Vo, Director of Retail Services of Cushman& Wakefield Vietnam, said eating and drinking, fashion and healthcareservices will lead the development of the retail sector in the next two years,so the market needs more retail space. In downtown areas, the demand for shopspaces remains high due to fierce competition among brands, boosting retailspace rents, particularly in HCM City and Hanoi.
Investors also pay special attention to hoteland industrial zone projects amidst the sharp increase of tourists to Vietnamand continual industrial growth.
There are opportunities in the Vietnamese marketfor both existing and new investors to increase their market share, Countryhead of JLL Vietnam Stephen Wyatt noted.-VNA
VNA
